Brazil Tightens Betting Regulations: Ban on Bonuses and Ads

The Brazilian government has taken a decisive and firm stance against irresponsible gambling practices, responding to growing concerns over the social and economic impact of gambling on vulnerable populations. On November 19, the Department of Consumer Protection and Defence of Senacon issued a preliminary order (No. 2,344/2024) that demands an immediate ban on the advertisement of betting bonuses. This critical measure seeks to curtail aggressive marketing tactics that may encourage excessive gambling. Additionally, the order prohibits all betting promotions targeting minors, a move aimed at protecting young, impressionable individuals from exposure to potentially harmful gambling behaviors. By implementing these restrictions, the government takes a significant step toward ensuring that gambling activities do not exploit vulnerable groups within society.

These measures are part of a broader set of regulatory actions designed to tighten the control over gambling activities in Brazil. Just weeks earlier, the country’s Supreme Court ruled that it would be illegal to use Bolsa Família welfare cheques for gambling purposes. This decision underscores the government’s commitment to curbing gambling’s influence on low-income families and the risk of individuals spending essential welfare funds on betting. Together, these initiatives highlight Brazil's ongoing effort to tighten regulatory oversight in anticipation of the official launch of its legal online betting market in 2025. The government’s actions signal a strong commitment to promoting responsible gambling while ensuring that legal reforms do not inadvertently harm vulnerable citizens.

The Policy Shift and Its Drivers

The move follows alarming findings from a July study by Brazil’s Central Bank, which revealed that 20% of funds disbursed through the Bolsa Família programme in August were spent on online gambling. Surveys also showed that some players diverted money earmarked for essential expenses—such as medicine, food, and clothing—towards gambling.

To address these risks, the new order seeks to curb aggressive promotional strategies and protect at-risk individuals, particularly children and adolescents, from exploitative practices. Order No. 2,344/2024 imposes strict conditions on operators during the ongoing regulatory transition, which runs from October 1 to December 31. The highlights of the directive include:

1. Ban on Betting Bonuses: Advertising of any betting bonuses, even if promotional, is prohibited.
2. Protection of Minors: All betting ads targeted at children and adolescents are barred.
3. Operator Compliance: Licensed operators listed with the Secretariat of Prizes and Bets (SPA) must comply. Violators face daily fines of BRL50,000 ($8,671) until they adhere fully.

A report evaluating the ban’s effectiveness is required within 10 days, reflecting the urgency and accountability expected by Senacon.

The Future

These restrictions add to the complexities faced by operators in a nascent market set to go live in January. The timing of the measures, paired with the Supreme Court’s ruling on Bolsa Família, underscores a tough regulatory landscape designed to protect the most vulnerable.

Licensed operators will need to recalibrate their strategies to meet the new requirements or face financial penalties. The focus on consumer protection, particularly for hyper-vulnerable groups, signals that Brazil is prioritizing ethics over rapid industry growth.